BitMEX executives have continued to appear in court since the company was pinned down by U.S. regulators in 2020. Exchange co-owners Arthur Hayes and Ben Dello then tried unsuccessfully to negotiate their surrender last March. Former head of commercial development at BitMex, Greg Dwyer will also have to hang out a little longer on the benches of American justice. The first hearing of his criminal trial was notably postponed for October 2022. Back to the facts.
Criminal proceedings for violation of the law on banking secrecy
A little over a year ago, the Commodities Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) initiated criminal proceedings against BitMEX and its executives. The American regulators accused the latter in particular of not having obeyed the laws on money laundering. In addition, co-founders Arthur Hayes, Ben Delo, Samuel Reed and business development manager Mr. Dwyer were also prosecuted for violating bank secrecy law.
In August 2021, the CFTC and FinCEN managed to come to an arrangement with the exchange to end the prosecution against it. BitMEX accepted in exchange for pay US regulators $ 100 million. However, it is now prohibited from offering derivatives and swaps without CFTC approval. BitMEX executives have not been able to receive the same type of treatment despite several attempts to negotiate with regulators.
Up to 5 years’ imprisonment for Mr. Dwyer
Mr Dwyer’s legal team claimed more time to defend their client, arguing that they had not had enough time to study the case. In particular, it was engaged in the unsuccessful fight against the extradition of Mr. Dwyer from Bermuda. Acceding to the request, Judge John Koeltl sets the start of the criminal trial for October 2022. Mr Dwyer now faces up to five years in prison for allegedly breaking bank secrecy law.
However, the latter pleaded not guilty like other BitMEX executives prosecuted for the same offense. A spokesperson for his legal team told the Sydney Morning Herald that Mr Dwyer is innocent and that the regulators’ accusations are baseless. Furthermore, the trials of co-founders Arthur Hayes, Ben Delo, Samuel Reed are scheduled for March 2022.
While the executives of BitMEX wait to know their fates, they can already rejoice in having won a first battle. The Delaware Supreme Court has in fact decided not to follow up on the request of traders who wished to initiate proceedings against the exchange and its officers.
Source: The Block
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so that you don’t miss any Cointribune essentials!
Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 in some crypto only increased my enthusiasm. I therefore resolved to study and understand blockchain and its many uses and to relay information relating to this ecosystem with my pen.